HCI moves ahead with the Brulpadda and Luiperd offshore gas fields

THE Brulpadda and Luiperd offshore gas finds, the only multi-trillion cubic feet gas discovery in South Africa, are national assets that can be profitably exploited and simply must be developed, said Hosken Consolidated Investments (HCI) CEO John Copelyn.

- EDWARD WEST

He detailed HCI's progress on these gas discoveries in the latest integrated report, which was released on Friday. JSE-listed HCI is a well-diversified investment holding company with interests that include businesses in casinos, hotels, energy, mining, transport, property, and media.

Last year all the international partners exited the gas project.

HCI controls Impact Oil & Gas (IOG), which in turn will own 48% of Toronto-listed Africa Energy Corporation (AEC).

AEC had held a 10% interest in the discoveries, Block 11B/12B, but it will become the operator after the international partners in 2024, led by the previous operator TotalEnergies, and CNR International and QatarEnergy International, withdrew from the project, which had raised questions about the project's viability at the time.

"Pursuant to our commitment not to abandon the discovery, we set about negotiating a number of agreements that will hopefully transform our ability to deliver progress," said Copelyn.

Firstly, AEC was funded to rid it of debt. Then an agreement was reached with the partner in IOG to unbundle its stake in the shareholding of AEC. These two agreements would result in HCI having a direct 48% shareholding in AEC.